Primus acquires Arbinet for $28 million in stock

Primus Telecommunications Group has entered into an agreement to acquire Arbinet Corp. for $28 million in stock.

Boards of directors for both companies have approved the merger, which is subject to regulatory and stockholder approvals.

Primus, which is based in McLean, will integrate Herndon-based Arbinet, an international voice and IP solutions provider, into its global wholesale group. The move should add $300 million in annual revenue. Once the acquisition is complete, Primus’ wholesale business unit is expected to generate more than $500 million in annual revenue, and bring Primus’ total consolidated annual run rate revenue to over $1 billion.

In a separate move, Primus wants to sell certain assets in United Kingdom, France, Belgium, and Italy. The company is looking to sell or discontinue its retail operations in Europe.